On May 31, 2024, the U.S. Department of Veterans Affairs will launch a new program — the Veterans Affairs Servicing Purchase (VASP) program — to help more than 40,000 veterans experiencing severe financial hardship avoid foreclosure and stay in their homes.

VASP is a new, last-resort tool in VA’s comprehensive suite of home retention options for eligible veterans, active-duty Service members, and surviving spouses with VA-guaranteed home loans who are experiencing severe financial hardship. Through VASP, VA will purchase defaulted VA loans from mortgage servicers, modify the loans, and then place them in the VA-owned portfolio as direct loans. This will empower VA to work directly with eligible veterans to adjust their loans — and their monthly payments — so they can keep their homes. With VASP, these borrowers will have a fixed 2.5% interest rate, which will provide a consistent, affordable payment for the remainder of their loan.

Over the past several months, VA has strongly encouraged a foreclosure moratorium through May 31, 2024, extended its COVID-19 modification program through May 31, 2024, and worked with veterans directly to help them retain their homes. In total, VA helped more than 145,000 veterans and their families avoid foreclosure in 2023 alone.

Learn more at VA News.